This invention relates to a method for increasing gambling operation utilization by gamblers, and has application in conventional gambling operations such as casinos, video poker outlets and sports books, horse and dog tracks, and in more recently developed internet-based on-line gambling operations which operate similarly to conventional casinos. The purposes of the invention include increasing the playing time of gamblers, creating incentives to play particular games, and to increasing the utilization of the gambling operation based on given utilization factors. All of these purposes are referred to below generally as increasing the utilization of the gambling operation.
Gambling involves placing a wager, or bet, of a specified amount of money on the outcome of an event, such as the pull of a slot machine handle, the roll of dice, drawing particular cards or combinations of cards, or the outcome of a sporting event. The gambler either wins or loses the wager. If the wager is won, the gambler wins the amount of the wager multiplied by the xe2x80x9coddsxe2x80x9d on the wager. For example, a wager of $100.00 with odds of three-to-one results in winnings of $300.00. If the wager is lost, the gambler typically loses the full amount of the wager, i.e., the full $100.00.
There are many factors that affect the utilization of gambling operations, including the time of day, day of the week, season of the year, weather, competitive entertainment events or other gambling operations, economic conditions, and holiday periods. It is well known that gambling operation utilization varies based on these utilization factors, among others.
Known casino gambling incentives include free or reduced-price rooms, meals, drinks and entertainment, rebates based upon an initial deposit by the gambler and bet volume. Gambling operations have developed sophisticated formulae for tracking betting volume, level of play and the like. However, none of these systems is known to be tied directly to gambling losses.
Therefore, it is an object of the invention to provide a method for increasing gambling operation utilization by gamblers.
It is another object of the invention to provide a method of increasing the playing time and thus the number of bets made by gamblers.
It is another object of the invention to create incentives for gamblers to play particular betting games.
It is another object of the invention to create incentives for gamblers to play betting games at particular times of day or on different days of the week.
These and other objects of the present invention are achieved in the preferred embodiments disclosed below by providing a method for increasing gambling operation utilization by gamblers. The method includes the steps of determining the effect on the utilization of the gambling operation occurring as a result of variations in percentage of losses or winnings incurred by a gambler who loses or wins a particular wager at the gambling operation, communicating the percentage variation in losses or winnings on the wager to gamblers or potential gamblers, and varying the percentage of losses or winnings incurred by a gambler on the wager by an amount correlated to the effect on the utilization of the gambling operation occurring as a result of the variation in the percentage of losses or winnings by the gambler.
According to one preferred embodiment of the invention, the variation of the percentage of loss always results in losses less than the amount wagered and/or the variation in the percentage of winnings always results in winnings greater than the amount wagered.
According to one preferred embodiment of the invention, the gambling operation is a casino.
According to another preferred embodiment of the invention, the gambling operation is an internet-based on-line gambling operation.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the gambling operation during different times of day during which the gambling operation operates.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the gambling operation during different days of the week during which the gambling operation operates.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of different games offered by the gambling operation.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the gambling operation during different seasons of the year.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the gambling operation during different weather conditions.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the gambling operation during different holidays.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the particular games of chance available for play at the gambling operation.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the gambling operation in relation to other competitive gambling operations.
According to yet another preferred embodiment of the invention, the variation in losses or winnings is based on the effect on the utilization of the gambling operation in relation to the type of gambler desired by the gambling operation.
According to yet another preferred embodiment of the invention, the reduction of loss or increase in winnings is credited to the gambler immediately after the result of the wager is determined.
According to yet another preferred embodiment of the invention, the credit representing the reduction of loss or increase in winnings is valid for use only at the gambling operation issuing the credit.
Gambling businesses are governed by the laws of supply and demand, just as are other types of businesses. It is well known that the xe2x80x9cdemandxe2x80x9d for gambling operations varies by the time of day, the day of the week, the season of the year, weather, holiday periods, competition from other gambling businesses and other forms of entertainment, among others.
The principal xe2x80x9cpricexe2x80x9d entailed in gambling is the bet, or wager, placed by the player. As in any supply and demand equation, there is a particular demand at a particular price. Generally, if price is lowered, demand increases, and if price increases, demand decreases. If a relatively small change in price results in a relatively large change in demand, the demand is xe2x80x9celastic.xe2x80x9d If a relatively large change in price results in a relatively small change in demand, the demand is xe2x80x9cinelastic.xe2x80x9d The elasticity of demand can be determined by use of formulae, or empirically by actually noting the change in demand that results from change in price.
One significant factor in the relationship between price and demand is the extent to which the purchaserxe2x80x94in this case, the gamblerxe2x80x94is aware of the real price and the changes in price.
Free or reduced-price rooms, meals, drinks and entertainment, rebates based upon an initial deposit by the gambler and bet volume are all known ways of reducing the price of placing a wager and thereby providing a greater incentive to gamble. However, these incentives are relatively indirect. They do not necessarily induce the gambler to play longer or place larger or more bets. In many cases, these techniques may not even be recognized by the player as having an effect on the price of gambling.
A core incentive to gamble resides in the fact that any single bet, if won, can wipe out numerous losses. Thus, providing an additional betting opportunity at no or reduced cost to a gambler who is losing is a powerful incentive to the gambler to continue betting in the hopes of winning and recouping lost bets.
In accordance with the invention, losses and winnings by the gambler are controlled and varied in such as way as to draw more players, skew the player towards particular games, lengthen the time spent betting, increase the number of bets and thereby increase the utilization of the facilities of the gambling operation. By properly and directly communicating the variation in the percentage of losses and winnings actually incurred to players and potential players, incremental business can be attracted. It is an important feature of the invention that the communication to the player is direct, immediate, repetitive and variable. As is well known, the gambling operation, i.e., the xe2x80x9chousexe2x80x9d, always wins in the long run. Therefore, incremental increases in gambling activity is certain to translate into greater net revenue to the gambling operation.
There already exists a wide variety of techniques available to monitor variation in gambling operation business based upon the factors referred to above. Physical casinos use sophisticated managerial software to monitor levels of play at all games, including slot machines. Statistical information is also available for monitoring and predicting the ebb and flow of gambling activity.
The more recent phenomenon of internet-based, on-line gambling also presents opportunities to monitor the level of play and provide incentives for incremental play. There are a finite number of players that can access on-line casinos at any given time. This number depends on the number of phone lines, system bandwidth, server capacity, software limitations, as well as other limitations, such as time of day, and others referred to above. There are now an enormous number of directly competitive on-line casinos which can be readily and quickly accessed by a potential player, who can quickly determine which one of any number of such on-line casinos he wishes to patronize.
The invention includes the method of monitoring the level of play in relation to server capacity and other limiting factors, and varying the percentage of losses or winnings incurred by a gambler on the wager by an amount correlated to the effect on the utilization of the gambling operation occurring as a result of the variation in the percentage of losses or winnings by the gambler. The variation of the percentage of loss can be made to always result in losses less than the amount wagered and/or the variation in the percentage of winnings can be made to always result in winnings greater than the amount wagered.
This information can be conveyed to the potential player on the log-in page, and advertised on banner advertising throughout the internet. The advertising can be xe2x80x9cstand alonexe2x80x9d, or can be linked to the on-line casino.
This practice is intended to attract play from other sites by offering a more attractive loss ratio than the competition. A properly programmed general purpose computer can monitor any desired condition and alter the loss and win ratio continuously. The loss ratio can also be used to attract particular player types or groups. For example, if a xe2x80x9chigh rollerxe2x80x9d is evaluating one on-line casino versus another, the loss ratio can be used to entice the player by allowing a rate to be negotiated which is agreeable to all parties. In effect, different loss ratios can be offered to different catagories of bettors.
Similarly, the method can be used to provide an enhanced xe2x80x9cinstant gratificationxe2x80x9d factor designed to convert observers to players by advertising a special loss ratio for a set period of time, or for particular games.
A gambling operation incurs essentially the same fixed costs, no matter how may players are gambling at a particular time. Any additional play increases the opportunity for the gambling operation to increase revenue at little or no additional cost. The method is extremely flexible, and can include crediting the account of the bettor, providing an instant rebate, or otherwise reducing the cash cost to the bettor.